Under new corporation laws, a vote of more than 25 per cent against the remuneration report triggers a first strike, meaning a second strike at next year's AGM could lead to a board spill.

The votes of Mrs Rinehart, whose bids for two board seats have been repeatedly rejected, were enough to capitalise on existing shareholder anger and drive opposition to the package above the 25 per cent threshold.

A second strike next year would force a spill on the Fairfax board, and open up new power for the mining magnate.

But Mrs Rinehart was not the only Fairfax shareholder with a problem - Roger Corbett and the Fairfax media board faced more than 100 angry investors on Wednesday, most of them small-time.

They have seen the company's share price plunge from $5.00 a few years ago to a low of 35 cents on Tuesday, in line with the fortunes of the once-prestigious media empire.

Mr Corbett repeated what he has been saying for months - that times are changing, and he confronted the share price crisis head on.

"We are acutely aware of shareholder anxiety over the state of the Fairfax Media share price," he said.

Mr Corbett revealed Fairfax had considered drastic options to stem the share price bloodshed - possibly spinning off the weak publishing assets of the Sydney Morning Herald and The Age to protect the rest of the company.

"We considered whether value could be generated by breaking up Fairfax Media through a series of asset sales," he said.

Following detailed analysis, the break up and de-merger options were ruled out.

Stop the presses

Chief executive Greg Hywood also had an admission - that the day could eventually come when Fairfax's Sydney and Melbourne mastheads become unprofitable and cease to be published in the traditional form.

"It could be three years, it could be five, or ten, or even 15, when print publications in our metropolitan businesses could become unprofitable and we move to a digital-only model," he said.

But there was no escaping the collapsing value of Fairfax, which now has a market capitalisation of less than $1 billion.

Media analyst Peter Cox, who nominated himself for a spot on the Fairfax Board, is blaming the leadership of Mr Corbett.

You're behaving as if you're the Directors of Google, as if you've created tens of billions for the shareholders.

And you're sitting there as a Board, collectively, who've blown up billions of dollars, whose credibility is through the floor.

Someone with some credibility puts themselves forward, and then you arrogantly dismiss him without even talking to him.

Shareholder advocate Stephen Mayne

"In the time that you've been chairman, the share price has gone down by 70 per cent," he said.

"Look at the increased value of Foxtel, for example, of Seek, of Carsales, all these other businesses that you were involved with have actually gone up in that period.

"So it's just not correct to say that the whole market has gone down."

Stephen Mayne, of the Australian Shareholders' Association, backed Mr Cox's bid for the Fairfax board and slammed Roger Corbett for not returning Mr Cox's calls.

"You're behaving as if you're the directors of Google, as if you've created tens of billions for the shareholders," he said.

"And you're sitting there as a board, collectively, who've blown up billions of dollars, whose credibility is through the floor.

"Someone with some credibility puts themselves forward, and then you arrogantly dismiss him without even talking to him."

'Elephant in the room'

Former Labor Senator Chris Schott had another bone to pick with Roger Corbett, given his inability to strike a truce with Mrs Rinehart.

"Even though I disagree with her politically, in a capitalist term she has the right to have some say, even if she's completely misguided, about the future of the company in which she's the biggest shareholder," he said.

"And how are we going to handle what I call the elephant in the room, as she is the biggest shareholder, and going on attacking us?"

The pressure prompted Mr Corbett to say he welcomed Mrs Rinehart, but admitted he was still trying to find a way to accommodate her wishes.

"In arriving at its position, the board needs to have regard for the rights of and benefits and interests of all shareholders," he said.

Mrs Rinehart was not at the Wednesday meeting, but her representative, John Klepec, of Hancock Prospecting, signalled the mining magnate remains unimpressed at the way Fairfax is being run.

"Well, how could we not be critical when we've lost so much money," he said.

"The shareholders have more blood on the floor than you'd find in the US Postal Service campervan at the Tour de France.

"There's been no blood spilt at the board level."

At the close of trade, shares in Fairfax Media were up nearly 7.9 per cent to 41 cents.